Integration With Social Security

Method of reducing an employee pension according to IRS procedures:

1. Offset method restricted to a DEFINED BENEFIT PLAN under which a mandatory percentage of the monthly Social Security benefit payable to a retired employee is subtracted from the monthly retirement benefit payable to the employee under a business firm's qualified retirement plan.
2. Integration method-used with a defined benefit plan or a defined contribution plan under which a basic level of compensation established for a retired employee so that (a) for compensation above this level, the employee receives a greater retirement benefit; or (b) for compensation below this level, the employee receives a smaller retirement benefit.